An expertise that exist at 3SIXTY Management Services is Acquisition Integration. This skill can assist significantly in the M&A process. This is an area that we at 3SIXTY Management Services focuse in on because there is tremendous opportunity cost savings and system integrations that become the ” MAKE OR BREAK” part of a M&A deal. The integration plan is paramount to the long term success of the acquisition. Often, after an acquisition is complete from the financial perspective, the acquiring company takes a collective breath and relies on “hope” that integration is somehow happening. Without a critical integration plan, usually 80% of mergers fail to integrate successfully. There are 3 key areas that must be addressed, monitored and a plan developed:
Key people– You need to make sure that the right people remain with the merged entity. Often it’s the key people that leave because they get frustrated that integration isn’t taking place the way they envisioned. It can be as simple as the acquiring company has a 401(K) plan and it is different then what they are used to. Years of service are not recognized in a way that is familiar. Meeting with key people and understanding their needs is vital. Communication is essential during this difficult time for the employee.
Customer Retention– Often when the Seller departs, so do many key, high-margin customers and its critical that the acquiring company has a plan in place so that transparency to acquired customers is fully achieved. We can’t express the importance of this enough.
Synergies– The M&A pro forma financials contains many assumption that justified the acquisition. The integration team must breathe life into these assumptions and build an execution plan to achieve these goals while improving service, reducing cost to serve and retaining key customers and people.
At 3SIXTY we can be your M&A Integration specialist, with experiences with many companies, large and small, and for many years. Please keep us in mind as you come across your next M&A targets.
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